A survey commissioned by Adjust finds American consumers spend an average $20.78 a month on app subscriptions, with more than a third using their smartphones to stream video and TV services every day. In response, the app marketing firm has launched a subscription tracking product to give marketers better visibility into subscription performance.
This follows a broader shift toward subscription-based monetization models, with Apptopia estimates showing that app-based subscriptions generated over $200 million in August 2020 alone, and many US adults planning to keep their subscriptions post-pandemic.
Adjust’s subscription tracking product enables marketers to build accurate Lifetime Value models that increase ROI where previously, they had poor access to important subscription data, which impacted their understanding of the user funnel.
By combining subscription measurement with attribution data, Adjust is able to inform its clients what marketing channels drive the longest-running and most valuable subscriptions. Marketers can then invest far more accurately in user acquisition and run engagement campaigns that boost loyalty and prevent churn.
The growth of subscription-based apps has intensified this year as users look to their mobile devices for a broader array of activities, from entertainment and e-commerce to fitness and finance.
Paul H. Müller, co-founder and CTO, Adjust
Adjust also released the results of a survey of US consumers examining the intensification of subscription and streaming consumption on mobile devices. The research shows that well over one-third (46.9%) used smartphones more to stream video/TV services amid social distancing, and they are increasingly doing so using subscription-based apps.
Other key findings include:
Respondents spend an average $20.78 a month on their app subscriptions. More than a quarter of Millennials and Gen Z consumers said they have stopped paying for other services in order to buy subscriptions on mobile app services (for example, subscribing to fitness apps over going to the gym). This compares to 17.9% of consumers overall.
25 – 34-year-olds spend the most on subscription apps — $25.85 dollars a month — while those 55 and overspend the least — $13.97 a month. Streaming apps were the most frequently downloaded subscription-based app (30.7%), followed by Gaming (9%) and News (4%).
Younger consumers lead the pack in mobile streaming, with Gen Z and Millennials most likely to pay for streaming and on-demand entertainment services than any other generation. 57.2% of Millennials and Gen Z also said they had been using their smartphones more often to stream video/TV services while social distancing.
Consumers surveyed spend an average $33.58 a month for streaming and on-demand entertainment services, with Netflix, Amazon Prime, Hulu, Disney+ and YouTube TV listed as respondents’ top five favorite streaming services.